Currently, there is a massive influx of out-of-state individuals looking for better quality of life and job opportunities in Florida. It is not hard to identify why so many people want to call Florida their home – no personal income tax requirements, pro-business government policies, and sunny weather year-round.
How is it possible to transfer an LLC originally established in another state to Florida? Keep reading to find out.
How Do I Transfer My LLC to Florida? – Feasible Solutions
Registering as a Foreign Business
When a company formed in another state wants to “transact business” in Florida, it is necessary to register as a “foreign business.” Please note that the term “foreign” does not refer to a company formed abroad but to a company formed in one state looking forward to “transacting business” in another state.
The process of registration can be made with the Florida Division of Corporations. Accordingly, the necessary applications forms are available on their website, allowing entrepreneurs to file online or print out and submit the forms by mail.
The application process requires foreign companies to comply with all statutory rules and regulations in both states – the state where the company was originally formed and the state of Florida.
Hence, the best approach is to consult with an expert business attorney to ensure legal compliance.
Florida law allows businesses formed out of the state not only to register as “foreign companies” but also to convert into Florida entities. The specific language used in Florida designates the process as “domestication” for corporations and “conversion” for LLCs.
This strategy is particularly advantageous for entrepreneurs who want to entirely move their LLCs structure to Florida while retaining the key elements of the original companies (i.e., EIN, property rights, etc.).
Additionally, it waives the necessity of forming another business from scratch, pausing business operations, or even interrupting the continuity of the company. Any entrepreneur interested in this type of strategy should contact an expert Florida attorney for a detailed assessment.
Starting Over in Florida
If the members involved in the LLC arrangement prefer to dissolve the company and start over in Florida, it is also possible to execute. However, dissolving an old business and starting fresh in a new state like Florida will require a significant amount of effort.
The members will have to dissolve the existing company, apply for an LLC registration with the Florida Department of State, obtain a new tax ID number, and establish new bank accounts for the business.
In this process, the member(s) might incur some losses, such as losing their previous credit, facing significant tax repercussions, and other inconvenient business formalities that would not be required otherwise.
In any case, the safest way to dissolve an LLC and start a new business in Florida is to talk to an expert business attorney with years of experience.
How Do I Transfer My LLC to Florida? – Seek Professional Guidance
Regardless of the option chosen, it is crucial to follow all the related statutory rules and regulations set forth by Florida law and the law of the state where the limited liability company (LLC) was originally formed.
The process will require opening new bank accounts and obtaining all required local licenses and permits. It is safest for an entrepreneur to work his or her way through the process with an experienced attorney, especially considering the peculiarities of Florida law.